Make Money on Patreon: 2025 Guide & Tax Tips
Diana
Updated on:
Jul 2, 2025
If you're a freelancer or self-employed in Germany looking to monetize your creative work or expertise, platforms like Patreon, Substack, and Gumroad offer excellent opportunities to build a sustainable income directly from your community. In this guide, we'll focus specifically on Patreon—how it works, its advantages and disadvantages, and essential considerations regarding taxes and legal compliance in Germany.
What is Patreon?
Patreon, founded in 2013 by musician Jack Conte, enables creators to earn a consistent income directly from their audience through subscription models. It is particularly beneficial for freelancers such as artists, writers, podcasters, YouTubers, and other content creators, offering a steady income stream by providing exclusive content and community perks.
Advantages and disadvantages of Patreon
Advantages:
Predictable and regular income through monthly or annual subscriptions.
Strong community engagement with direct interactions.
Flexible pricing tiers appeal to diverse audiences.
Disadvantages:
Patreon charges platform fees.
Consistent content creation is required to retain subscribers.
How to start earning money on Patreon
Step-by-step guide:
Generate following outside Patreon. Patreon is primarily a monetization platform, not designed for building an audience. While you can direct your existing followers to Patreon for exclusive content or personal access, having a Patreon without a solid following will likely not generate much income.
Clearly explain what subscribers can expect and the benefits they get.
Set multiple membership tiers. Offer different pricing options, each with specific benefits.
Regularly publish exclusive content. Maintain consistent updates to keep subscribers engaged. It's a delicate balance between your free content to build an audience and exclusive content worth paying for.
Actively engage with your community. Your followers will come and pay for access to you. That's the most important part.
When does Patreon payout?
Patreon typically makes monthly payouts around the 5th of each month. Payment methods include PayPal, Payoneer, or direct bank transfer (SEPA).
Freelancer or Gewerbe in Germany?
When you start generating income with Patreon, you must register a business – self-employment or a company. Both freelancers and Gewerbe can work on Patreon. The type of registration you need depends on the nature of your activity, not the platform itself.
Can you use Patreon without Gewerbe?
Patreon itself does not require a Gewerbe; however, most activities you engage in will likely fall under Gewerbe regulations. Selling merchandise? Gewerbe. Selling digital goods such as tutorials, eBooks, or videos? Gewerbe.
Taxes and Patreon income
Patreon earnings must be declared to German tax authorities (Finanzamt). Freelancers report this income through VAT declarations, EÜR, and an annual income tax return. If you have a Gewerbe, an additional Gewerbe tax will apply.
💸 You won't get charged Gewerbesteuer if your annual profit is less than €24.500.
Creators with less than €25k in revenue can register as Kleinunternehmer and avoid charging and reporting VAT.
Norman was specifically designed for self-employed creators. With Norman, you can easily register as self-employed in Germany for free and automate your accounting and tax preparation, making compliance and financial management effortless.
Patreon vs. OnlyFans
If your content is adult-oriented, OnlyFans may be suitable. However, Patreon is generally preferable for non-adult professional content creators, offering stronger community and professional credibility.
Patreon alternatives: Substack and Gumroad
Substack: Ideal for writers, journalists, or newsletter creators. It's basically a blogging platform, so podcasts or videos can work worse there.
Gumroad: Excellent for selling digital products like e-books, software, courses, or creative assets. It specializes on single purchases instead of monthly subscriptions.
Start monetizing legally with Patreon
When monetizing your content, compliance with German laws is crucial. This includes officially registering your self-employment and adhering to tax obligations.
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Turn your side-gig into a thriving German business—fast. Inside you’ll learn:
Cheat sheet with expenses you can deduct from taxes,
Step-by-step registration walk-through (Gewerbe / Freiberufler),
VAT & income-tax basics in plain English,
Tax calendar and starting out checklist.
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Conclusion
Patreon offers creators in Germany a powerful platform to build a sustainable income from their creativity and expertise. By understanding community-building, offer construction, and tax implications, you can successfully leverage Patreon to grow your community and revenue. With tools like Norman, handling the administrative side of self-employment becomes effortless, enabling you to focus entirely on creating and engaging with your audience.
Monetizing with Patreon FAQ
Do I need a business licence for Patreon earnings?
Yes, if your rewards include any commercial element (downloadables, merch, templates). File a Gewerbeanmeldung at your local trade office; purely artistic/teaching work may qualify as Freiberufler and skips the trade office.
How often does Patreon pay out?
By default, Patreon pushes funds on the 5th of every month. You can also trigger a manual payout any time after your balance shows “Available” (usually 1–7 days after the patron is charged; iOS pledges take up to 75 days).
Which German tax forms do I file?
Anlage S (Freiberufler) or Anlage G (Gewerbe) + Anlage EÜR for your profit.
VAT return (UStVA) if you’re above the small-business limits.
Trade tax return (GewSt) only if you run a Gewerbe and your annual profit exceeds 24,500 €.
Is Patreon income subject to trade tax?
Only when you’re registered as Gewerbe and your profit exceeds the 24,500 € Freibetrag for sole traders/partnerships. Freiberufler pay no trade tax.
Can I stay a Kleinunternehmer?
Yes, as long as your turnover stays ≤ 25,000 € in the previous year and ≤ 100,000 € in the current year (new limits from 1 Jan 2025). Cross either threshold and you must switch to regular VAT immediately.